Chapter 13 bankruptcy may serve as a resource for struggling homeowners who are unable to make their mortgage payments. Avoiding foreclosure is a serious concern for many families which is why they should be familiar with legal resources that may be able to help them stay in their home including personal bankruptcy protections.
What Chapter 13 bankruptcy does
Personal bankruptcy protections can help with overwhelming debt and other specific concerns struggling consumers and homeowners may have. The Chapter 13 bankruptcy process helps the filing party reorganize their debts into a manageable repayment plan they can pay over time. The length of the repayment plan is usually 3 to 5 years. Chapter 13 is best for filing parties who have a reliable source of income to comply with the repayment plan. Once the repayment plan is complete, the filing party can enjoy a debt discharge and be debt free.
Help with foreclosure
Chapter 13 bankruptcy may be able to specifically help with foreclosure by allowing the filing party to include missed mortgage payments in their repayment plan which will allow them to get caught up. Additionally, the automatic stay that goes into effect with any bankruptcy filing prevents creditor collection actions from proceeding during the bankruptcy process.
Should you go for it?
Personal bankruptcy protections can help with some of the most significant financial concerns and worries many consumers and homeowners face. For consumers struggling with crippling debt, or homeowners fearful of keeping their family home, it can be worthwhile to understand personal bankruptcy protection options and how each works.